Ad hoc announcement pursuant to Art. 53 LR – Press release

LEM announces results for 9 months 2022/23: continued sales
growth despite challenging Covid situation in China
Geneva, Switzerland, 6 February 2023 – LEM (SIX: LEHN), a leading global company in electricalmeasurement for renewable energy, automation, power network and e-mobility applications,announces 9 months results for 2022/23 (April-December) compared to 2021/22:•

Bookings decreased by 17.1% to CHF 362.2 million (CHF 436.9 million)•Sales increased by 9.5% to CHF 301.6 million (CHF 275.5 million); at constant exchange rates,sales increased by 12.5%•

The company benefits from a diverse global distribution of sales, led by China and EMEA:– China CHF 122.0 m (40.5% of total)– Rest-of-Asia CHF 51.9 m (17.2% of total)– EMEA CHF 90.8 m (30.1% of total)– Americas CHF 36.9 m (12.2% of total)•R&D investments of CHF 24.8 million (CHF 22.5 million), or 8.2% of sales•EBIT increased by 6.5% to CHF 68.3 million (CHF 64.2 million); the EBIT margin decreased to22.7% (23.3%)•Net profit for the period increased to CHF 55.3 million (CHF 53.7 million)

Frank Rehfeld, Chief Executive Officer, said: “We are pleased to report a solid quarter, with Q3 salesof CHF 103.5 million, again exceeding the CHF 100 million threshold. This result was driven mainly by
our Automotive and Energy Distribution businesses. In November, China suffered from lockdowns, andin December, the end of China’s zero-covid policy led to a surge in Covid cases amongst ouremployees. Both affected our production capacity. Nevertheless, within three weeks our Chinese teamreturned to full production, which shows their strength and commitment. The Americas’ strong
performance was led by the accelerating adoption of electric vehicles and our solutions for drives.”
Andrea Borla, Chief Financial Officer, remarked: “This quarter was marked by top-line growth andhealthy profitability. Our order book continues to drop to more normal levels after the disruptions of thepast two years. Although we still face supply chain challenges, we confirm our forecast of CHF 390 to400 million in full year sales.”LEM Holding SA

Page 1/7

Performance by businesses
in CHF millions
Businesses
Automation

Automotive

Renewable Energy
Energy Distribution& High Precision
TrackTotal

Scopedrives, robots, toolingmachines, elevators,
HVAC
battery (EV & CE), motor
control, onboard
charging
solar, windcharging stations, smart
grid, energy storage,
high precision
trains, metro, trackside

2022/239M

2021/22
9M

Change

101.8

96.6

+5.4%

75.3

62.5

+20.5%

50.3
42.8

49.5
35.3

+1.6%
+21.2%

31.4
301.6

31.6
275.5-0.6%+9.5%

Automation
Sales performance for Automation grew favorably, and even better with adjusted exchange rate
effects. Business was mainly driven by the manufacturing investment cycle and strong demand forsmall and medium power applications.
Automotive
Driven by battery management and motor control, the Automotive business in Q3 again showed robust
sales after a record Q2. As customers had been placing orders with longer time horizons, bookings arenow slowing down. Fundamental demand for EVs remains strong, as indicated by a book-to-bill ratioof over 1.0 for the quarter.
Renewable Energy
Sales increased slightly, although there are still bottlenecks for components. The prospects for
Renewable Energy remain strong, as key markets accelerate due to favorable government policies
and a foreseeable easing of the supply chain constraints.
Energy Distribution & High Precision
Investments in e-mobility continue driving customer interest in our DC Meter products, mainly due toacquisition of new customers and growing demand in Europe and the US. Flexible Rogowski coils forenergy distribution management contributed considerably to the business growth. The IN family, which
offers high precision solutions for test benches in the EV market, continues to develop strongly.
Track
Our traction business, with its project-based long investment horizons, continues to be impacted bycomponent shortages. At constant currencies, growth was still positive, and the order book has
increased considerably.

LEM Holding SA

Page 2/7

Performance by regionsin CHF millions
Regions
China
Rest-of-Asia
EMEA
Americas2022/239M

2021/22
9M

Change

122.0
51.9

107.9
50.2

+13.1%
+3.5%

90.8

91.1

-0.4%

36.9

26.3

+40.4%

301.6275.5

+9.5%

Scope
Japan, South-Korea,India, South-East Asia
Europe, Middle East &Africa
NAFTA & Latin
AmericaTotal

China
Sales performance continued to increase. The EV market, both domestically and for export, continued
to develop in a positive manner. Our Renewable Energy business performed well, but we were still notable to fully satisfy the demand for solar and electric storage devices. The Automation businessremained stable, serving mostly local demand.
Rest-of-Asia
Sales increased slightly, whereas orders decreased as they reverted to more normal, pre-pandemiclevels. Japan performed well in the Automotive business, and new EV and hybrid launches drovestrong sales in the Automotive business in South Korea. In India, where Automotive business isgrowing, Track was nearly flat due to component shortages.
EMEA
While sales were adversely impacted by foreign exchange rates, Q3 showed solid bookings andsuccessful sales of the DC Meter product in Germany and the rest of Western Europe. Track sales
showed solid performance on the quarter, owing to strong demand for our Energy Metering solutionsin Germany. The fundamental megatrends driving our businesses continue to gain momentum inEurope, as it develops renewable energy sources to diversify supply and ensure energy security.
AmericasQ3 showed strong sales in the Automotive and Automation businesses and was positively impacted
by final orders for a planned phase-out of certain products. Our DC Meter has been certified in the USand Canada for use in EV charging infrastructure. Our order book continues to grow and benefit fromthe US government’s commitment to sustainable energies.
Profitability remains robust
Gross profit was up by 9.8% at CHF 142.8 million (CHF 130.1 million), while the gross margin improved
slightly to 47.4%. This is 20 basis points better than in the prior year, mainly due to sales price increases
being offset by purchase price increases.
SG&A costs were up by 14.7% to CHF 49.9 million (CHF 43.6 million) and accounted for 16.6% ofsales (15.8%). This increase reflects our digitalization projects (investment in software and hardware),external consulting support for several key initiatives, and recruitment of additional talent. We continue
with our long-term investment in future applications, with R&D up in absolute terms by 10.0% to CHF
24.8 million (CHF 22.5 million), or 8.2% of sales (8.2%).
EBIT increased by 6.5% to CHF 68.3 million from CHF 64.2 million, primarily due to improved sales.
Our reported EBIT margin was down at 22.7% compared with 23.3%.

LEM Holding SA

Page 3/7

The negative impact of foreign exchange translations on the first 9 months was CHF 2.1 million, sameas last year, mainly due to depreciation of the EUR. The Group tax expenses of CHF 10.1 million
represent a tax rate of 15.4%.
Net profit for the first 9 months increased to CHF 55.3 million, while the net profit margin decreased to18.3% compared with 19.5%.
Outlook
Our businesses have shown to be successful as they continue to benefit from the fundamental driversof decarbonization, electrification, automation, and mobility. Growth remains restrained by shortages,
mostly of semiconductor components. We remain aware of the risk of potential recessions in keymarkets. For the full financial year 2022/23, the company currently expects sales from CHF 390 to 400
million (CHF 373.4 million for 2021/22), with an EBIT margin above 20%.
Changes in Executive Committee
After a long career as Senior Vice President Automotive and after leading the implementation of ahighly successful growth strategy, Rainer Bos has left the senior management team of LEM as ofDecember 2022. We are pleased to advise the appointment of three new members to our leadershipteam.
▪

Bastien Musy has been promoted to Senior Vice President Europe & Americas and joined theExecutive Management team. He was formerly Vice President Global Product Management, Head
Product Management Automotive and Head of Special Projects at LEM.

▪

John McLuskie joined the Executive Management team as Senior Vice President Asia. Based inShanghai, he has served most recently as President of GKN Automotive China.

▪

Uwe Gerber joined the Executive Management team as Senior Vice President Operations.
Previously, he was Chief Operations Officer at Schaltbau Bode in Kassel, Germany.

The planned extension of the Executive Committee is now complete. With diverse nationalities andcultures, experience and expertise, this team is well prepared to lead the organization and to achieveour ambitions.

Conference call and webcast
Frank Rehfeld, CEO, and Andrea Borla, CFO, will provide a presentation of the 9 months 2022/23
results today at 10:00 CET at a media and investor community audio webcast and conference call.
Listen to live audio webcast
https://event.choruscall.com/mediaframe/webcast.html?webcastid=TbqA0OQE
The press release, webcast slides, and the link to the audio webcast are available in the Investor
Relations section of the LEM website (www.lem.com/en/investors), where the recorded webcast willlater also be archived.
Dial-In Numbers
Switzerland & Europe:
UK:
USA:
Other countries:+41 (0)58 310 50 00+44 (0) 207 107 06 13+1 (1) 631 570 56 13
https://services3.choruscall.ch/NUMBERS/Attended_Dial_In_Numbers.pdf

LEM Holding SA

Page 4/7

Financial calendar
The financial year runs from 1 April to 31 March
25 May 2023
Full year results 2022/23
29 June 2023
Annual General Meeting of Shareholders for the financial year 2022/23
4 July 2023
Dividend ex-date
6 July 2023
Dividend payment date
LEM – Life Energy Motion
A leading company in electrical measurement, LEM engineers the best solutions for energy andmobility, ensuring that our customers’ systems are optimized, reliable and safe.
Our 1,600 people in over 15 countries transform technology potential into powerful answers. We
develop and recruit the best global talent, working at the forefront of megatrends such as renewableenergy, mobility, automation and digitization.
With innovative electrical solutions, we are helping our customers and society accelerate the transition
to a more sustainable and affordable future.
Listed on the SIX Swiss Exchange since 1986, the company’s ticker symbol is LEHN.
www.lem.com

Contact: Investment community
Andrea Borla, Chief Finance Officer
Phone: +41 22 706 1250
Email: investor@lem.com

LEM Holding SA

Contact: Media
Cabinet Privé de Conseils s.a. (CPC)
Michael Füglister: fuglister@cpc-pr.com, mobile: +41 78 839 07 62
Etienne Vioget: vioget@cpc-pr.com, mobile: +41 79 560 54 83

Page 5/7

Appendix
Consolidated income statement
April to December
2022/23

In CHF thousands

2021/22

Change+9,5%

Sales

301'607

275'462

Cost of goods sold(158'781)(145'358)

Gross margin

142'826

130'104

47,4%

47,2%

Sales expense(21'214)(21'592)

Administration expense(28'735)(21'969)

Research & development expense(24'753)(22'508)

226

120

EBIT

68'35064'155

EBIT margin (in %)

22,7%

23,3%

Financial expense(1'202)(367)

Financial income

285

220

Foreign exchange effect(2'090)(2'098)

Profit before taxes

65'34361'910

Income taxes(10'064)(8'186)

Net profit of the period

55'27953'724

Net profit margin (in %)

18,3%

19,5%

Gross margin (in %)Other income

LEM Holding SA

+9,8%

+6,5%

+5,5%+2,9%Page 6/7

Key Figures
2022/23

LEM Group

Orders received
Total LEM

Q1Q2

Q3

158,1112,092,1

Book-to-bill ratio

Q1Q2

Q3Total LEM

1,741,040,89

Q4Q4Q4FY

FYFY

2021/22

ChangeQ3 - Q3 9M - 9M

Q1

Q2

Q3

Q4

FY

146,4

153,7136,7139,5576,4-32,6%-17,1%

Q1

Q2

Q3

Q4

FY

Q3 - Q3 9M - 9M

1,57

1,70

1,49

1,421,54-40,3%Q3 - Q3 9M - 9M

-24,3%Sales

Q1Q2Q3Q1

Q2Q3Q4FY

Automation

30,536,934,433,332,131,233,7130,3+10,3%

Automotive

21,828,425,220,120,022,523,385,8+12,2% +20,5%

Renewable Energy

15,418,016,817,016,715,716,566,0+7,0%

Energy Distribution & High Precision

13,814,114,912,410,712,213,248,6+22,0% +21,2%

+5,4%
+1,6%

Track

9,310,012,210,510,910,211,3

42,8+19,8%-0,6%

Total LEM

90,7107,3103,593,390,491,897,9373,4+12,8%+9,5%

EBITQ1Q2Q3Total LEM

19,526,322,6Net profit of the period

Q1Q2Q3Total LEM

14,720,520,1LEM Holding SA

Q4Q4FYFYQ1Q2Q3Q4FY

21,220,922,024,288,4

Q1Q2Q3Q4FY

17,317,918,518,672,4

Q3 - Q3 9M - 9M+2,5%+6,5%

Q3 - Q3 9M - 9M+8,3%+2,9%Page 7/7